Michael Burry Calls Nvidia’s $500B Wall Street Tie-Up A ‘Sign Of Desperation’ — and Rising Default Expectations Aren’t Helping

• Nvidia’s chip-and-investment deals with AI companies have fueled concerns that such arrangements may be artificially boosting chip demand and valuations across the sector.

• Nvidia is working with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize more than $500 billion in financing for potential buyers of its chips.

• Stocktwits sentiment for Nvidia was ‘neutral’ on Thursday.

Hedge fund manager Michael Burry has yet again raised concerns about Nvidia, calling the AI chipmaker’s latest move to partner with Wall Street banks to finance chip purchases a potential “sign of desperation.”

One of the most prominent investors to have taken a short position against the chipmaker at the center of the AI boom, Burry said the move is the latest in a series of circular financing deals involving Nvidia, suggesting such arrangements increase risks for the company and the broader market.

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“The more one understands, the more one sees that it is a sign of desperation,” Burry wrote in the chat section on his Substack page. “The idea is to create a channel where Nvidia can prime the capital pump to get more sales and maintain NVDA’s 20 percentage point scarcity-induced gross margin increase since the AI FOMO started.”

Nvidia’s Circular Deals In Focus